Edelbrock Corp. to Construct New Distribution Facility
28 September 1998
Edelbrock Corp. to Construct New Distribution Facility, Add Manufacturing Capacity; Move will Improve Service, Facilitate Growth
TORRANCE, Calif.--Sept. 28,1998--Edelbrock Corporation (Nasdaq NM:EDEL) today announced that it will break ground in January 1999 on a new 65,950 square-foot distribution facility in Torrance, California. Edelbrock said that it expects the fully automated facility will be operational by July 1999 and will be constructed on 3.3 acres of Company-owned land near its Torrance headquarters and manufacturing complex adjacent to its exhaust system and shock absorber production facilities. Edelbrock said that it plans to convert its existing 30,000 square-foot distribution center in Torrance into additional manufacturing space. The Company estimates that construction of the new facility, which it intends to fund with working capital, will cost approximately $2.3 million.According to Edelbrock Chairman and Chief Executive Officer Vic Edelbrock, the new facility will both improve service to its nationwide network of distributors and help the Company contend with the rising sales volume it has been experiencing. Over the years, growing numbers of enthusiasts have come to appreciate the performance and quality built into every Edelbrock product, and with that recognition has come both higher sales and the need to manufacture and process product orders more efficiently.
"Our new state-of-the-art facility will give us the means to do that", he said. "With it, we'll be able to continue to provide our distributors across the country with the rapid, efficient service they deserve as our volume of sales rises with the demand for our new Performer IAS shock absorbers and other products. The additional manufacturing capacity we will gain by converting our existing distribution center will also be very useful as Edelbrock continues to grow in the years ahead."
Founded in 1938, Torrance, California-based Edelbrock Corporation is recognized as one of the nation's premier designers, manufacturers and distributors of performance replacement parts for the automotive and motorcycle aftermarkets. In addition to three modern production facilities in Torrance, the Company owns and operates a state-of-the-art aluminum foundry and its QwikSilver Division for motorcycle aftermarket parts in San Jacinto, California, at which it manufactures many of its quality products.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above which are not historical facts are forward-looking statements that involve known and unknown risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as the financial strength and competitive pricing environment of the automotive and motorcycle aftermarket industries, product demand, market acceptance, manufacturing efficiencies, new product development, the success of planned advertising, marketing and promotional campaigns, the success of the Company's, its vendors' and its suppliers' Year 2000 compliance programs and other risks identified herein and in other documents filed by the Company with the Securities and Exchange Commission.